Micron Technology, Inc. (MU) Is Ready to Ride the Memory Market Higher

Page 1 of 2

The memory market is showing an improvement in both DRAM and NAND segments. The mere mention of the memory market will, in most, elicit the knee-jerk reaction of relief for Micron Technology, Inc. (NASDAQ:MU). Before DRAM prices recovered, Micron Technology, Inc. (NASDAQ:MU) missed Wall Street’s consensus estimates for eight consecutive quarters.

Micron Technology, Inc. (NASDAQ:MU)

Companies such as Samsung and SanDisk Corporation (NASDAQ:SNDK) are also active in the memory market and are aggressively trying to set the new standard for the sector. While I see this as crucial to both, I believe Micron Technology, Inc. (NASDAQ:MU) will continue to thrive in the sector because it has been able to focus its energies on advancing its operational efficiency.

Micron’s world

The trend of tablets and smartphones is driving the DRAM market. A report from market researcher IDC stated that the DRAM share in smartphones and tablets is expected to reach 26.7% by the end of 2013, almost double from 14.1% in the first quarter of 2012. Over the next few years, tablets and other mobile devices will lead to greater usage of DRAM.

Micron Technology, Inc. (NASDAQ:MU) has gained traction with European customers and continues to win new designs. It is also setting the standard in the production of solid-state drives and DRAM for desktops, laptops, servers, and other devices. For instance, it introduced its SAS solid drive earlier in the year and the new PCle accelerator

Competition

Competitor number one: Integrated Silicon Solution, Inc. (NASDAQ:ISSI). To cope with the depressed DRAM market and counter Micron’s release of the accelerator and other DRAM products, it introduced a new 4-gigabit  SDRAMs solution to provide product support for applications in the automotive, industrial, medical, and communications sectors. When favorable times arrived, namely the improving prospects of the DRAM and NAND market, Integrated Silicon Solution, Inc. (NASDAQ:ISSI)’s  stock gained momentum.

It now sits at around $11, and the company reported a loss per share of $0.16 in the trailing twelve months. Integrated Silicon Solution, Inc. (NASDAQ:ISSI) offers investors EPS growth — estimated to average 10% a year over the next half-decade.

Competitor number two: SanDisk Corporation (NASDAQ:SNDK). Shortly after Micron Technology, Inc. (NASDAQ:MU) introduced its SAS solid-state drive, SanDisk released its Extreme solid state drive to prevent a Micron domination of the market. With SanDisk reporting an 11% improvement in revenue on a year-on-year basis in the first quarter, it is also setting a very high standard. Not only has Micron Technology, Inc. (NASDAQ:MU) suffered due to the declining PC industry, it has also lost market share to SanDisk. SanDisk Corporation (NASDAQ:SNDK) offers investors EPS growth — estimated to average 28.43% a year over the next five years.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!